Japan Considers Sales Tax Cut to Ease Economic Strain

Japan's ruling coalition is contemplating a temporary reduction in sales tax to mitigate the economic impact of rising living costs and U.S. tariffs, with a focus on alleviating food price increases.

Japan's ruling coalition is considering a proposal to temporarily reduce the sales tax rate as a strategic measure to mitigate the economic challenges posed by escalating living costs and U.S. tariffs, according to a report from the Yomiuri newspaper.

Sources within the coalition parties, cited by the publication, indicated that the proposed tax cut would specifically target food items. This sector has been notably affected, with prices steadily escalating.

The plan aims to provide immediate financial relief to citizens by lowering their cost of living, although the measure is intended to be a temporary intervention.

(With inputs from agencies.)